January IPO Indicator Shows First Drop Since July 2006
SHANGHAI, China, Feb. 26 /Xinhua-PRNewswire/ --
Indicator Value Change
January 2007: 231.5
December 2006: 237.8
Month-to-month change: -2.66%
January 2006: 156.8
Year-to-year change: 47.6%
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Highlights
The IPO indicator dropped 2.66 percent in January 2007,
from 237.8 to 231.5. Chinese IPOs this month raised a total
of $789 million. Of the ten newly listed companies, nine
are small and medium enterprises listed on Shenzhen Stock
Exchange and one is listed on Shanghai Stock Exchange.
Analysis
For the first time since July 2006, the IPO indicator
dropped -- by 2.66 percent in January 2007. Of the eighty
companies included in both this month's and last month's
indicator, six saw a decline in price, while seventy-four
saw an increase. The Industrial and Commercial Bank of
China (ICBC) alone contributed 71 percent of the decrease
in the indicator's float-adjusted market capitalization,
while the Bank of China (BOC) contributed another 28
percent. The A share price of ICBC dropped 20 percent in
the past month, and its H share price dropped approximately
6 percent, which is not uncommon after the initial sharp
run-up in price. One company was deleted from the
indicator after staying for twelve months, and ten newly
listed companies were added. The ten January IPOs were all
on the Shanghai and Shenzhen stock exchanges.
Methodology
A stock's float-adjusted market capitalization over
time forms the basis for indicator calculations. Stock
dividends, stock splits, special dividends, share
consolidations, repurchases, spin-offs, and combination
stock distributions may trigger adjustments to the
indicator values. Only companies incorporated and
domiciled in mainland China that go public on the Shanghai,
Shenzhen, and Hong Kong stock exchanges are included.
Time Period Coverage and Frequency
New companies are added to the indicator as soon as
they are listed, while current companies are removed after
twelve months. The IPO Indicator has a base date of
December 31, 1997, when the indicator's value was set equal
to 100, and covers the period from December 31, 1991, to the
present. Values are calculated on a monthly basis. The
indicator for each month is released in the third week of
the following month.
Sources of Data
The real-time and historical trading data used in the
construction of this indicator are provided by Bloomberg
and Xinhua Finance; underlying information used to
calculate the float ratio is obtained from a variety of
sources, including Xinhua Finance's subsidiary Mergent,
stock exchanges, regulators, and the companies themselves.
Corporate actions are sourced from Xinhua Finance,
regulatory filings and news services.
To view additional information, visit
http://www.xinhuafinance.com/indicators and
http://www.milkeninstitute.org/chinaindicators .
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http://www.xinhuafinance.com .
The Milken Institute is a nonprofit, independent
economic think tank whose mission is to improve the lives
and economic conditions of diverse populations around the
world by helping business and public policy leaders
identify and implement innovative ideas for creating
broad-based prosperity. The Milken Institute has extensive
expertise in China and conducts ongoing research on China's
banking and capital markets. It is based in Santa Monica,
Calif. For more information, please visit
http://www.milkeninstitute.org .
Contact information:
Xinhua Finance
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Ms. Joy Tsang
Tel: +86-21-6113-5999 or +852-948-64363
Email: joy.tsang@xinhuafinance.com
Japan
Mr. Jiong Sun
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Email: jsun@xinhuafinance.com
Taylor Rafferty (Media contact for Xinhua Finance)
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Europe
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Milken Institute
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Communications
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Email: jmanfre@milkeninstitute.org
SOURCE Xinhua Finance; Milken Institute